Overview

The power of management encompasses the ability to set objectives, organize work, control activities, and make decisions relating to the operation of a company, on which its health and survival depend. This power, from a legal and statutory point of view, is exercised by the Board of Directors, which may delegate some of its prerogatives to a management officer, embodied in the person of the Chief Executive Officer. This sharing of powers unfortunately places the Chief Executive Officer under a hierarchical and charismatic dependence on the Board of Directors, likely to lead to abuses of rights or even jeopardize the interest of the company. Hence the need, through the present analysis, to lay the foundations of contractual justice for a virtuous regulation of the exercise of management power. This regulation suggests a balance of management power through an objective separation of prerogatives between General Management and the Board of Directors, and an alignment of the contractual framework under the prism of performative economic analysis.

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